Posted on 05/13/2012 12:49:41 PM PDT by MacMattico
Mr. Blandings Builds His Dream House Part II
In my opinion the answer lies in your priorities. If the house is important to you because of its history the simple “street value” of the property might not be the biggest concern.
But if protecing your “nest egg” and it’s important to you to buy only something you can reasonably assume will increase in value over the next five years, I’d suggest you not buy it.
2012 was supposed to be the worst year in US history for home foreclosures. But we haven’t yet seen that wave of real estate inventory be put up for auction/sale. I suggest that the reason for this is government pressure being brought to bear to hold that inventory off the market until after the election, so the massive downturn in home values that would result from 1.2 to 2 Million homes popping up in foreclosure auctions doesn’t impact Obama’s chances for reelection.
I believe current real estate values are being held up artificially by the federal government, and that after the election is over all hell is going to break lose in that market.
You are exactly right. Plus, the “profit” you make in selling your house may need to be reinvested in the new house within two years of the sale. This may no longer be a valid tax law, but you need to check into the tax consequences, as well as if the state can take the house to pay for nursing care. In MN, your mother would have needed to give all assets away over a regulated period of time (5 years) to prevent forced sale of the assets for care (medical assistance).
Buy my house. It needs a lot of work and I need the money. And I’m a nice guy.
I just sold my house on the lake for a “fire sale” price. The kids were kind of upset, but I couldn’t take care of it anymore, so I moved in with my batchelor son. Good move, I said to myself when I got the real estate tax bill for my commercial property! Now I can’t take any money out of there without raising the rents, but I won’t do that because I have to have it fully rented just to pay the bills, so I made a deal with my son, who is a tenant in my building, He doesn’t pay rent and I live at his house.
So my advice to you is to look at this in a strictly business perspective, and forget about sentimental things.
Sorry, sentimentality has no place in real estate. Run away from that deal.
If the house is structurally sound, is in a good area where home prices are stable, and you like the community, why not go for it if it won’t be a financial burden?
However, remodeling a home can be a rather stressful experience. I think it’s important that the whole family be on board with the idea.
The best way to acquire an old house is to buy one after some other idiot has poured money into it and has to sell way below what he/she has in it.
“He doesn’t pay rent and I live at his house.”
Sounds like he got the bad deal. just kidding.
I think you are very lucky. My dad died when I was 15 and we lost our home and everything else.
location, location, location.........
I’d sell the old house. I’m in a situation now where my parents have been gone for 8 years, but my supposedly well educated brother refuses to sell their house The house is about 50 years old and has been broken into at least once that I know of. The neighborhood is deteriorating, and most likely, when or if my brother decides to sell the house, it will be practically worthless.
Sell now and save yourself the grief.
If she transfers ownership to you the state may take it to pay for her medical care if she's under Medicaid. They can reach back five years to do this in most states. Even if you sell it and you take the profit they can claim the money.
If you sell your home and move into your mother's home after taking ownership I don't know what they can do.
You MUST consult an attorney versed in this crap. The state will try to get its money even if they have to throw you out of the house.
Good advice....
Yes, she is very lucky. My mother is leaving everything to my wonderful brother who has gone behind her back to tell us other siblings that he is not going to be burdened with her when she is too old or sick to care for herself.
So, being a high school dropout, extortionist, bullying, lying, deceitful son who refused to marry the mother of his out of wedlock kid until he could afford a wedding so he could cash in on wedding gifts does pay off.
Course, I wasn’t told of the decision to give him everything until hubby and I sunk $8k into her home for hurricane repairs and old appliances- brother refused to help- physically or financially- even while knowing all would go to him.
Sorry to vent. I just hate being related to a dirtbag.
My grandparents both went into a nursing home, thinking they would always come back to their house. We paid someone to mow the lawn and look in on it. We kept it up.
They passed away without ever moving back, but knowing it was always just a couple miles away was a great comfort to them.
What does your mom think?
It should be sold for your mother’s care. Do you even have power of attorney?
yes, you are being sentimental and the rest of your family sounds like they arte trying to be nice about it
Old houses are MONEY PITS.
Is this where you want to be investing your family’s financial future?
Sell the house to a buyer you think will love and restore it, someone who is interested in the family history and determination of the woman who started your family real estate dynasty
and whole host of other old house issues
Not to mention jack up the property taxes on landlord-owned property to double what homeowners pay
Buying pre-1979 property (or worse, pre-1950 property) for rental is extremely risky in many localities
check it out
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